Digi International Inc (DGII)

Activity ratios

Short-term

Turnover ratios

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Inventory turnover 2.81 2.59 2.29 2.27 2.26 2.35 2.62 2.94 2.82 3.23 2.99 2.68 2.48 2.62 2.88 3.09 2.84 3.40 3.24 3.07
Receivables turnover 7.19 7.94 8.64 8.65 7.59 7.70 5.85 5.00 6.48 7.06 7.33 6.66 5.53 4.72 5.03 3.34 3.13 4.51 5.69 4.78
Payables turnover 11.38 11.23 8.89 9.11 5.99 5.31 5.78 6.68 6.39 6.29 7.49 7.28 6.03 4.82 6.11 7.68 5.81 6.38 8.75 9.24
Working capital turnover 4.65 5.55 5.60 5.04 5.19 5.57 4.82 4.33 4.13 1.64 1.60 1.66 2.91 2.57 2.33 1.94 2.06 1.72 1.78 1.91

Digi International, Inc. has shown fluctuations in its activity ratios over the past eight quarters. Inventory turnover has ranged from 2.20 to 2.85 during this period, with Q2 2022 showing the highest turnover. This indicates that the company is managing its inventory efficiently, with a decreasing trend in recent quarters.

Receivables turnover has been relatively stable, fluctuating between 5.00 and 8.65, with Q3 2023 showing the highest turnover. This suggests that Digi International is collecting its receivables effectively, maintaining a consistent performance in this area.

Payables turnover has varied from 5.15 to 11.15, indicating fluctuations in the speed at which the company pays its suppliers. Q1 2024 reported the highest turnover, suggesting Digi International has been managing its payables efficiently in the most recent quarter.

Working capital turnover has ranged from 4.33 to 5.55, with Q4 2023 showing the highest turnover. This ratio reflects how effectively the company is using its working capital to generate revenue. Digi International has generally maintained a stable performance in this area, with some fluctuations in recent quarters.

Overall, the analysis of Digi International's activity ratios suggests that the company is managing its inventory efficiently, collecting its receivables effectively, and maintaining relatively stable working capital turnover. However, there are fluctuations in payables turnover, which may require further attention to ensure consistency in managing supplier payments.

Average number of days

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Days of inventory on hand (DOH) days 129.95 140.96 159.59 160.51 161.24 155.44 139.26 123.99 129.49 112.92 122.22 136.35 147.42 139.12 126.78 118.01 128.59 107.38 112.75 118.97
Days of sales outstanding (DSO) days 50.78 45.95 42.22 42.20 48.09 47.43 62.38 72.99 56.35 51.73 49.77 54.77 66.05 77.41 72.55 109.39 116.44 81.01 64.17 76.43
Number of days of payables days 32.07 32.49 41.05 40.05 60.98 68.72 63.10 54.64 57.11 58.07 48.72 50.16 60.50 75.72 59.73 47.50 62.87 57.20 41.70 39.52

Digi International, Inc. has shown fluctuations in its activity ratios over the past eight quarters.

Days of inventory on hand (DOH) have ranged from 128.18 days to 165.77 days. While there was a general downward trend in DOH from Q1 2023 to Q2 2024, indicating the company was able to manage and sell its inventory more efficiently, the sudden increase in Q3 2023 and Q4 2023 raised concerns about potential inventory management issues.

Days of sales outstanding (DSO) have varied between 42.20 days and 72.99 days. The decreasing trend in DSO from Q4 2022 to Q3 2023 suggested that the company was collecting its accounts receivable faster. However, the increase in DSO in Q4 2023 and Q1 2024 raised concerns about potential difficulties in collecting payments from customers on time.

Number of days of payables ranged from 32.72 days to 70.91 days, showing some inconsistency in the company's payment practices. A decrease in days of payables indicates that the company is taking longer to pay its suppliers, which could strain relationships, while an increase could signal better cash management.

Overall, Digi International, Inc. should closely monitor and manage its activity ratios to ensure efficient operations, optimal working capital management, and healthy relationships with both customers and suppliers.

Long-term

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Fixed asset turnover 15.42 15.28 14.82 14.41 14.57 14.07 13.71 12.45 11.82 25.44 24.10 22.45 21.58 24.27 22.07 20.43 19.25 18.34 17.64 18.34
Total asset turnover 0.53 0.53 0.52 0.51 0.48 0.45 0.42 0.39 0.37 0.50 0.49 0.48 0.55 0.53 0.51 0.47 0.45 0.64 0.66 0.67

Long-term activity ratios provide insight into how effectively a company is utilizing its long-term assets to generate sales. In the case of Digi International, Inc., the fixed asset turnover ratio has been consistently high, indicating that the company is efficiently using its fixed assets to generate revenue. This trend suggests that Digi International is effectively managing and leveraging its long-term assets to drive sales growth.

Additionally, the total asset turnover ratio, which represents how efficiently the company is utilizing all its assets to generate revenue, has shown a positive uptrend over the periods analyzed. The increase in total asset turnover indicates that Digi International is becoming more efficient in generating sales relative to its total assets.

Overall, the analysis of Digi International, Inc.'s long-term activity ratios suggests that the company is effectively managing its long-term assets to drive revenue growth and improve operational efficiency.